Colorado was one of the first few states to allow the use of medical cannabis through a ballot measure in the year 2000. It took 12 years for adult-use cannabis to become legal in the state. The effect legal cannabis has on Colorado real estate is nothing short of impressive, as recently shown in the Clever Real Estate study. Is legalization the reason real estate is booming in Colorado? What factors are responsible for the high home prices in the Colorado real estate market? Read on to find out how legal cannabis has had a substantial impact on the Colorado real estate market.
The Clever Real Estate Study
This new study confirms the link between the housing market and the legal status of weed in the state. Like in 36 other states with either full legalization or only medical legalization, the housing market experienced a ripple effect in Colorado. Where full legalization is possible, these states had an impressive increase in home values as compared to other states. Additionally, in towns and cities with recreational dispensaries, home values shot up by at least $22888. More impressively, with each new dispensary, a city adds the house value increases.
What is the cause of the massive boom in housing values? Here are some of the factors to consider:
Tax Revenue
It’s no secret that the cannabis industry plays a huge role in the increase in tax revenue in various states. With this new source of revenue, the quality of life in these states is improving, including in Colorado. Most of the time, the revenue goes towards health, infrastructure, and education. Colorado is no different from the new source of revenue going mostly towards education. And who wouldn’t want a chance at attending better schools? The result is, of course, an influx in the population. But that’s not the only reason for the growing Colorado population.
Job Opportunities
The cannabis industry provides more and more job opportunities that improve the quality of life of the locals. From the cannabis tourism sector to cannabis farms, dispensaries, stores, and several other ancillary businesses all across the country, there are numerous lucrative opportunities available.
Moreover, the workforce that comes with it needs a new place to stay, preferably in the state with the opportunities. As such, the high demand for housing leads to an increase in housing values. Besides, other businesses like restaurants are indirectly affected and create new opportunities to cater to the booming workforce.
Population Influx
Colorado, like most states with full legalization status, has experienced a population influx in residents. More and more people are moving to areas that are cannabis-friendly. Since Colorado legalized recreational marijuana, the population has grown faster than most other states, making it the second-fastest-growing state. It may be due to the improved quality of life with a better education in the state, easier access to marijuana, or the business opportunities available. Either way, the growth is impressive and has positively impacted the real estate market.
Colorado Real Estate Market
While housing is the most impacted real estate sector in cannabis-friendly states like Colorado, commercial space also benefited. Now more than ever, there’s an increase in demand for office spaces, retail stores, and storage compartments in the state following the growing business opportunities. Besides, with low interest rates, anyone who’s interested in making investments can wait for profits from purchases to grow and sell and reinvest in other properties.
Final Thoughts
There are numerous positive impacts of the legalization of marijuana in Colorado. With cities within the state growing in population, there is a boom in real estate. All this is a result of cannabis legalization. Contact us today for more information on how legal cannabis has had a substantial impact on the Colorado real estate market.